McDonalds Unit II Case Study

McDonalds
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The restaurant industry is one of the largest and most lucrative business today all around the world. It is estimated to have a market capital of about $104 billion US dollars. Although it has been highly fragmented with more than 550,000 restaurants, the price-to-earnings ratio is quite high at 80.2. at the top of the food chain is the McDonalds with a market capital of more than $59.8 billion dollars, flowed closely behind by the Yum! Brands at $16.3 Billion dollars and then the Burger King Holdings, Inc.with a market capital of more than $2.46 billion dollars (McDonalds, 2013).
Currently the corporation operates in more than 120 countries around the world, serving more than 68 million people with their fast food products. With this global reach in the world the corporation boasts of revenues that get to the tunes of $27 billion dollars, with profits hitting the $5 billion dollar mark on an annual basis. This has been without the chronic criticism of the public on issues regarding labour, health and the environments, leading to a string of law suits, some of which have left the corporation with irreparable dents. The corporation has always responded in kind with great efforts to make sure they stay at the top. One the most recognisable effort revolves around the environmental friendliness, where the corporation made all the efforts from the year 1989 to adopt sustainable practices. The Global Environmental Commitment has seen the corporation reduce the carbon footprints throughout the world, with efforts such as using the recyclable packaging. It has also beenby magazines such the Black Enterprise Magazinefor the creation of jobs to the minorities as well taking part in initiatives that are children centred.
The closest competition is the Yum! Brands and t...